EXECUTIVE SUMMARY1.The Indian economy is highly influenced by rural economy; therefore the role of Regional Rural Banks (RRBs) in the rural development is phenomenal. Regional Rural Banks in India are an integral part of the rural credit structure of the country. Since the very beginning, when the RRBs were established in October 2, 1975, these banks played a pivotal role in the economic development of the rural India. The main goal of establishing regional rural banks in India was to provide credit to the rural people who are not economically strong enough, especially the small and marginal farmers, artisans, agricultural labours, and even small entrepreneurs. 2.The history of Regional Rural banks in India dates back to the year 1975. It was the Narsimhan committee that conceptualized the foundations of Regional Rural Bank in India. The committee felt the need of regionally oriented rural banks that would address the problem and requirements of the rural people in India. Regional Rural banks were established under the provisions of an ordinance promulgated on the 26th September 1975 and the RRB act, 1975 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The RRBs mobilize financial resources from rural/semi urban areas and grant loans and advances mostly to the small and marginal farmers. For the purpose of classification of bank branches, The Reserve Bank of India defines rural areas as a place with a population of less than 10,000. The RRBs are jointly owned by Government of India, the concerned State Government and Sponsor Banks; the issue capital of a RRB is shared by the owners in the proportion of Government and 50%, 15% and 35% respectively.

3.The Rajasthan Gramin Bank (RGB) is one of the important rural bank of Rajasthan. This bank is committed to the objective to cater to the financial needs of rural masses to make them self reliant and to facilitate them with better and safer saving...

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